Question

find the future value of the ordinary annuity. Interest is compounded annually.
r = $5000, i = 0.08 n = 10

Answer 1

\[5000(1.08)^{10}\]and a calculator

Answer 2

i came up with 14.48 it doesnt seem right

Answer 3

10794.62

Answer 4

oh.. r is $1000 not $5000

Answer 5

1000(1.08)^10=2158.92 right?

Answer 6

future.. do you add that to $1000?

Answer 7

@satellite73 am i close?

Answer 8

this is what i get
http://www.wolframalpha.com/input/?i=5000%281.08%29^%2810%29

Answer 9

oh if it is $1000 then the answer is different

Answer 10

http://www.wolframalpha.com/input/?i=1000%281.08%29^%2810%29

Answer 11

my problem changed cuz my answer was wrong...

Answer 12

what is the problem now?

Answer 13

interes rate changed to 0.09
i entered it into that site but the answer it gave me was wrong.

Answer 14

the interest rate is 0.09, what is the starting amount?

Answer 15

oh wait.. n is 20 lol hold on
no it still showeed wrong..
r is $5000 i is 0.09 n is 20

Answer 16

ok lets do that one

Answer 17

http://www.wolframalpha.com/input/?i=5000%281.09%29^%2820%29

Answer 18

my notes is showing that it hast to be divided by
the interest

Answer 19

you lost me
if you are compounding more than once a year you have to divide the interest rate by the number of compounding periods per year

Answer 20

255,800.60 was the correct answer

Answer 21

you need to know several things
1) the initial amount
2) the interest rate
3) the number of years
4) the number of compounding periods per year

Answer 22

my notes are showing r=[(1+i)^n-1/i]

Answer 23

we need all 4 numbers

Answer 24

what do all those variables represent?

Answer 25

r is annual interest i is interest rate per perod n is # of compounding periods

Answer 26

and it is
\[r=(1+i)^{\frac{n-1}{i}}\] ?